Heaptalk, Jakarta — Indosat Ooredoo Hutchison (IOH) is implementing a stock split with a ratio of 1:4 to expand access to shares for retail investors, especially the younger generation (09/24). This strategic decision was approved during an Extraordinary General Meeting of Shareholders.
In more detail, the stock split will be executed with a 1:4 ratio for all Series B shares, reducing the nominal value from Rp100 per share to Rp25, while the nominal value of Series A shares remains unchanged. As a result, the number of listed Series B shares will significantly increase from 8,062,702,740 shares to 32,250,810,957 shares.
This move is expected to boost transaction volume and liquidity. By lowering the price per share, Indosat aims to allow more Indonesians to benefit from the company’s growth through share ownership and to expand participation in the Indonesian capital market.
Boosting stock affordability and liquidity
Vikram Sinha, President, Director, and CEO of Indosat Ooredoo Hutchison, stated that the company wants to attract more people to share Indosat’s vision by boosting stock affordability and liquidity. “Our goal is more than just financial growth—it’s about empowering individuals and driving inclusive economic growth across Indonesia,” Vikram said.
The company’s outlook was recently upgraded from ‘Stable’ to ‘Positive’ by international rating agency Fitch while maintaining its AA+ (idn) credit rating. The company also received an ‘idAAA (Stable)’ rating from Pefindo. Earlier in 2024, ISAT (the company’s ticker on IDX) was included in the LQ45 Index as one of the most liquid stocks on the Indonesia Stock Exchange (IDX). This reflects the company’s solid financial condition and excellent growth prospects, with high transaction value and frequency in the Indonesian capital market.
Furthermore, the stock split reaffirms the company’s commitment to creating an inclusive economic environment, empowering Indonesia’s younger generation to manage their financial future and positively contribute to national development through greater involvement in the financial market. “We are ambitious to ensure everyone benefits from the digital economy. This corporate action confirms our belief that a more diverse group of investors, particularly from the younger generation, can share in Indosat’s future success,” Vikram concluded.
